Glossary of Real Estate Terms

Glossary of Real Estate Terms

GLOSSARY of real estate acronyms. Someone had mentioned it was hard to follow when just acronyms were used in posts. If you want to add to or have a question, leave a post and we'll edit it in.

AFD = Agreement For Deed

AFF = Automated Foreclosure Finder

AITD = All Inclusive Trust Deed

AMR = Anticipated Market Value

APN# = Assessors Parcel Number

APR = Annual Percentage Rate

ARM = Adjustable rate mortgage

ARV = After Repair Value

ASP = Anticipated Selling Price

BARM = Be a Real Estate Millionaire (Dean's book. JUST in case anyone didn't know Smiling)

BOM = Back On Market

BOR = Board of Realtors

BPO = Broker's Price Opinion

CAD = County Appraisal District

Cap = Capitalization

CAP = Cap Rate (NOI / Price)

CCIM = Certified Commercial Investment Member

CCR = Conditions, Covenants, and Restrictions

CDA = Confidential Disclosure Agreement

CFD = Contract for Deed

CLTV = combined loan to value. This is if you have a 1st and 2nd or HELOC on your home, it is the combined amount owned compared to the value of your home.

CMA = Comparative Market Analysis

COCR = Cash on Cash Return

COE = Close Of Escrow

COF = Cost of Funds

COO = Certificate of Occupancy

CPI = Consumer Price Index

CRB = Certified Residential Broker

CRE = Creative Real Estate

CRS = Certified Residential Specialist

DBA = Doing Business As

DCR = Debt Coverage Ratio

DIL = Deed In Lieu

DOM = Days on Market

DOS = Due On Sale Clause

DOT = Deed of Trust

DSCR = Debt Service Coverage Ratio

EM = Earnest Money

FAL = Foreclosure Alert

FCRA = Fair Credit Reporting Act

FFE = Furniture, Fixture, and Equipment

FHA = Federal Housing Administration

FHLMC = Federal Home Loan Mortgage Corporation, Freddie Mac

FMR = Fair Market Rent

FMV = Fair Market Value

FNMA = (Fannie Mae) - Federal National Mortgage Association

FRBO = For Rent by Owner

FSBO = For Sale By Owner

GMAC = General Motors Acceptance Corporation

GRM = Gross Rent Multiplier, is the price divided by the total rent. The problem with it (as opposed to the cap rate) is that it does NOT include an info on expenses

HELOC = Home Equity Line of Credit

HML = Hard money lender

HOA = Homeowners Association

HUD = Housing and Urban Development

HVAC = Heating, Ventilation and Air Conditioning

IEE = Instant Equity Exchange

IRA = Individual Retirement Account

IRC = Internal Revenue Code

IRR = Internal Rate of Return

IRS = Internal Revenue Service

L/O = Lease Option

L/P = Lease Purchase

L/S = Landlord Seller

LIBOR = London Interbank Offering Rate

LLC = Limited Liability Company

LO = Lease Option

LOA = Letter of Authorization

LOC = Line of Credit

LOI = Letter of Intent

LP = Limited Partnership

LPOA = Limited Power of Attorney

LTV = Loan-to-value ratio

MAI = Member Appraisal Institute

MAO = Maxium Allowable Offer (Typically if you can get it, it is 30% off the ARV less repairs)

MFL = Maximum Foreseeable Loss

MIP = Mortgage Insurance Premium

MLS = Multiple Listing Service

MUD = Municipal Utility District

NAR = National Association of Realtors

NDA = Non-disclosure Agreement
(also known as a confidentiality agreement)

NIV = No Income Verification

NMD = No money down

NNN = Triple Net Lease

NOD = Notice of Default

NOI = Net Operating Income (Total Income minus all expenses EXCEPT debt service)

NOO = Non Owner Occupied

NTS = notice of trustee sale

O/F = Owner Finance

OBO = Or best offer

OO = Owner Occupied

OPM = Other people's money

P&S = Purchase and Sale

PFC = Prepaid Financial Charge

PITI = principal, interest, taxes, & insurance

PMI = Private mortgage insurance

PML = Private Money Lender

POA = Power of Attorney

PR = Primary Residence

PUD = Planned Unit Development

REI = Real Estate Investing / Real Estate Investor

REIA = Real Estate Investors Association

REIT = Real Estate Investment Trust

REO = Real estate owned

ROI = Return On Investment

RTO = Rent to Own

SBA = Small Business Administration

SBC = Small Balance Commercial (under 5 million)

SEC = US Securities and Exchange Commission

SFH = Single Family House

SFR = Single-family residence

Sub2 = Buying property subject to existing financing

T/B = Tenant Buyer

TAA = Texas Apartment Association

TAR = Texas Association of Realtors

TAV = Tax Assessed Value

TIL = Truth In Lending

TREC = Texas Real Estate Commission

UBIT = Unrelated Business Income Tax

UCC = Uniform Commercial Code

VA = Department of Veterans Affairs / Veterans Administration


"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)

"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11

For a little about me, welcome to the site, and a few tips for new DG family members, click on this link:


Hello brother, yes that is one of my favorite scriptures too! Another one is "My peace I leave with you, not as the world gives, I give you, be not troubled neither dismayed" John. Be encouraged my friend, how is your investing going? I have done 3 deals, wholesale. Have you?



Go faster do more! GFDM!


Thank you for the helpful list.

I like my one stop shopping on DG Smiling Don't have to google a million different things just come to the site and find what I am looking for.

warmest regards,
Lisa Richardson

Great Discussion

Great discussion about glossary of real estate terms. Thanks for sharing this with all of us.


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After Assignments

Ive been wholeselling for nearly 2 years. To be quite frank, im bored with it. The money is ok, but I want to go to the next level. Buy and hold. Could someone give me some pointers on how to get started.


thanks for doing this...

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